The Dow Jones Industrial Average dropped Monday, with the stock market still set to end July with solid gains. Monday's mixed action comes as investors await critical employment news due this week.
The labor market will be in focus this week, with a big monthly jobs report due Friday. Economists forecast a steady 3.6% unemployment rate for July and see employers adding 190,000 jobs, down from June, with a moderate gain in average hourly earnings.
Meanwhile, more employment data will be reported in the Labor Department's Job Openings and Labor Turnover Survey, due Tuesday at 10 a.m. ET.
On the earnings front, ON Semiconductor topped second-quarter views before the open. ON stock jumped 5% in early trade, hitting a record high. Sofi Technologies surged 18% on strong earnings results.
Late Monday, Arista Networks, DoubleVerify, Lattice Semiconductor, Monolithic Power and Rambus are due to report.
Stock Market Today
Adobe rallied 3.2% Monday morning after Morgan Stanley upgraded the stock from equal weight to overweight, with a raised price target of 660.
Electric-vehicle giant Tesla traded up 0.7% early Monday. Dow Jones tech giants Apple and Microsoft were mixed after today's stock market open.
Other stock market leaders include Alphabet and Meta Platforms. GOOGL stock inched higher, while Meta shares dropped 0.3% in early action.
Allegro MicroSystems, Broadcom, Skechers — as well as Dow Jones stocks Boeing, Caterpillar and Salesforce — are among the best stocks to watch in the current stock market rally.
Dow Jones Today: Oil Prices, Treasury Yields
After Monday's opening bell, the Dow Jones Industrial Average dropped less than 0.1%, while the S&P 500 lost 0.1%. The tech-heavy Nasdaq composite moved down 0.15% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust was down 0.15%, while the SPDR S&P 500 ETF dropped 0.1% early Monday.
The 10-year U.S. Treasury yield ticked lower to 3.94% Monday morning.
West Texas Intermediate oil prices continued to add to their torrid gains Monday morning, at their highest level since mid-April. WTI futures traded 1% higher, to over $81 a barrel.
Stock Market Action
On Friday, the Dow Jones Industrial Average rose 0.5%, while the S&P 500 gained 1%. The tech-heavy Nasdaq composite climbed 1.9%.
Friday's Big Picture column commented, "Buyers came back into the stock market Friday after a harsh downside reversal for the major stock indexes Thursday. Friday's gains were fueled by mostly in-line inflation data inside the Personal Income and Spending report, along with another round of solid earnings reports."
Now is an important time to read IBD's The Big Picture column as the stock market is at this year's highs.
Dow Jones Stocks To Watch: Boeing, Caterpillar, Salesforce
Aerospace giant Boeing broke out last week, surpassing a 223.91 flat-base entry. Shares are just out of the 5% buy area that went up to 235.11. BA stock dipped 0.3% Monday morning.
Industrial giant Caterpillar remains in buy range past a 250.89 entry in a cup with handle, according to IBD MarketSmith pattern recognition. CAT stock rose 0.9% early Monday. Caterpillar earnings are due Tuesday morning.
Salesforce's recent breakout continues to struggle, with the stock holding just above the flat base's 225.00 entry, according to IBD Leaderboard analysis. CRM stock rose 0.2% Friday, right above the entry. Shares slid 0.8% Monday morning on a Morgan Stanley downgrade from overweight to equal weight.
Stocks To Buy And Watch: Allegro, Broadcom, Skechers
Allegro MicroSystems surged past a new entry in recent weeks, in the buy range that runs up from the 48.72 entry to 51.16. The company reports fiscal first-quarter results Tuesday. And on Monday, ALGM stock climbed 2.2%.
Chip giant Broadcom is eyeing a 921.78 buy point in a consolidation, according to IBD MarketSmith pattern recognition. Shares are just 3% away from their latest entry. AVGO stock edged lower Monday morning.
Skechers broke out Friday, surging above a 54.77 buy point after the company's strong quarterly earnings results. Shares are in the buy area that runs up to 57.51. SKX stock was up 0.5% early Monday.
Best Stocks To Buy And Watch In Stock Market Rally
These are four best stocks to buy and watch in today's stock market, including a Dow Jones leader.
|Correct Buy Point
|Type Of Buy Point
Source: IBD Data As Of July 31, 2023
IBD Leaderboard stock Tesla rallied 4.2% Friday, snapping a three-day losing streak. Amid the recent pullback, Tesla shares are trying to find support around their key 50-day line. A decisive rebound would place the electric-vehicle leader in a new buy area.
TSLA stock looked to add to Friday's gains, trading up 0.7% Monday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock added 1.35% Friday, holding near its recent highs. AAPL stock continues to hold sharply above a 157.38 buy point. Apple will report fiscal third-quarter results late Thursday. Early Monday, shares edged higher in morning action.
Microsoft shares tried find support at their 50-day line last week, but look for more decisive rebound to place the stock in a new buy area. And on Monday morning, Microsoft shares were down 0.4%.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.